As Germany is scrambling to shift its energy consumption away from gas, the federal government and Important Projects of Common European Interest (IPCEI) have decided to invest heavily in hydrogen projects. - TheMayor

With the backing of the EU Commission, IPCEI has decided to fund 62 major industrial projects for green hydrogen. 70% of the funding will come from the Federal government, while the remaining 30% from individual German states.

In the case of Hamburg, the government has decided to fund eight projects, mainly focusing on decarbonizing the industry and providing producers with green hydrogen. According to a statement by the city, these eight projects will cost around 223 million euros. The projects are said to be finished in 2028 and can potentially reduce CO2 emissions by 600,000 tons.

Kickstarting Hamburg’s hydrogen-powered industry

Hamburg authorities have announced four areas where they will focus their hydrogen capacity development. One involves a structural change in the industry. While the sector is one of the biggest local emitters, it also provides a lot of jobs, forcing local authorities’ hand in providing support rather than mandating a change.

Another is a structural change in ports so that they are equipped to handle climate change and work as a boost to the on-land transition. Additionally, this needs to be coupled with investment in land route transport.

Lastly, the government wants to focus on energy networks. The existing network infrastructures and the resulting options for action in the electricity, gas and heating sectors form the backbone of the transformation process towards a climate-neutral economy.

Some of the big projects that authorities will finance through this new scheme involve a joint Green Hydrogen Hub made by Shell, Mitsubishi and Hamburg Energiewerke, the city’s energy company.

Another one includes the hydrogen industry network, a series of pipelines that will connect the industrial sector to hydrogen production and distribution facilities. Furthermore, the new round of financing will also include the Airbus: WIPLiN project - hydrogen for aviation infrastructure and production.

This is a huge opportunity for Hamburg in terms of economic policy, because the industry always follows the energy sources, but also in terms of national politics since we can use it to compensate for the North-South divide.

Jens Kerstan, Senator for the Environment, Climate, Energy and Agriculture